Why on-call availability weighs on personnel costs
In many Swiss SMEs — IT services, plant maintenance, weekend logistics, after-hours customer support — at least one employee remains reachable to respond in an emergency. Organisations often speak of “on-call” or “standby”, but under labour law and accounting what matters are the distinctions between on-call availability, on-site availability and actual performance of work.
Imprecise treatment inflates or understates personnel cost, creates audit variances and complicates reconciliation between the employment contract, internal regulations, payslip and chart of accounts. The Labour Act (LA), Ordinance 1 concerning the Labour Act (OLL 1) and any collective labour agreements (CLA) define when standby duty or on-call availability count as working time, when they remain free time and how they must be remunerated.
This guide outlines a practical path for business owners, HR managers and accountants: qualifying services, calculating gross cost to the company, accounting entries and recurring controls, with references updated to the federal framework in force in 2026.
On-call availability, standby and intervention: what changes
Before fixing allowances and cost lines, align internal language with that used on payslips and in audit. In OLL 1 the notion closest to operational on-call is standby duty (art. 14–15):
On-call availability
Period during which the employee must be reachable and, within an agreed deadline, start an intervention. May take place off premises if immediate physical presence is not required.
On-site availability
Waiting at the workplace or at a location designated by the employer. If standby is performed at the company, the entire time on call generally qualifies as working time (art. 15 para. 1 OLL 1), unless collective or contractual agreements compliant with the law provide otherwise.
Actual intervention
Work performed from the call until the activity ends. Off premises, travel to and from the intervention site counts as working time if provided for by OLL 1, internal regulations or the CLA.
Document shifts, call channels, maximum response times and remuneration criteria in writing. Clear internal regulations reduce disputes and make repeatable month-by-month accounting easier.
Labour Act, OLL 1 and working time
The LA and OLL 1 govern working hours, rest periods and standby duty, possibly supplemented by sector CLAs. They do not replace case-by-case advice, but guide policy and shift calendars.
| Situation | Usual qualification | Implication for the SME |
|---|---|---|
| Standby off company premises, freedom of movement | Time on call counted as work to the extent of activity actually performed; travel included (art. 15 para. 2 OLL 1) | Flat or lump-sum contractual allowance; track intervention hours separately |
| Mandatory presence at company or premises | Working time for the entire period on call (art. 15 para. 1 OLL 1) | Ordinary pay or shift rate; compensatory rest if weekly limits are exceeded |
| Intervention after the call | Working time from actual activity (and from travel if applicable) | Minimum guaranteed per intervention, night/holiday premiums if provided |
| Applicable CLA | May govern allowances and premiums in a binding manner | Check mandatory applicability by sector and number of employees |
| Weekly and night rest | Limits and exceptions under LA/OLL 1 | On-call shift planning compatible with rest; respect standby limits (art. 14 OLL 1, e.g. max. seven days every four weeks) |
Premiums for night, Sunday or public holiday work are not always mandatory under federal law, but may follow from the contract, the CLA or internal practice. Consistency between contract and actual practice is essential for tax deductibility and social compliance.
On-call allowances: remuneration models
SMEs typically adopt one or more of the following schemes, also combined for different departments:
- Flat rate per on-call shift — fixed amount for each block (e.g. night, weekend) regardless of the number of calls.
- Allowance per call — compensation on receipt of the call, optionally with a minimum of paid hours per intervention.
- Hourly pay on intervention — actual hours at base or enhanced salary, with possible reduced on-call supplement.
- Compensatory time off — additional rest instead of part of the remuneration, if permitted and tracked in the time system.
Whatever model is chosen, the amount must follow from the employment contract or a signed annex (regulations, individual agreement). Avoid “oral” rules that are hard to replicate in management accounting.
Calculating personnel cost for the company
On-call allowances that constitute remuneration are subject to mandatory social contributions and employer ancillary costs. For an estimate of gross employer cost:
| Item | Typical base | Note for on-call |
|---|---|---|
| Salary and allowances | Agreed gross amount | Separate on payslip “on-call” vs “intervention” if useful for analysis |
| OASI / DI / EO | OASI remuneration up to the annual ceiling (CHF 148,200 in 2026) | Salary allowances included; check exclusions only for explicitly non-salary items |
| ALV (unemployment insurance) | Same OASI base up to the ALV ceiling | Employer share 1.10% on insured salary (2026 rate) |
| LPP (occupational pension) | Coordinated salary | Recurring allowances affect coordinated salary; align fund regulations |
| LAA (UVG) / income compensation (EO) | Insured remuneration / OASI salary | Off-site interventions: verify accident coverage (occupational/non-occupational) and risk classification |
| Ancillary costs | Training, equipment, telephone | Direct on-call costs (device, calls, km) with a clear reimbursement policy |
Simplified numerical example
A technician receives CHF 120 flat on-call allowance for a Sunday on-call shift (salary item). With typical employer social charges around 13–18% of OASI salary (varies by LPP, accident insurance and canton) and LPP contributions, employer cost for the shift alone can exceed CHF 135–145, excluding mileage reimbursements or additional intervention hours. Multiplied by the number of annual shifts, the line becomes material in the personnel budget and in the hourly cost of internal services.
Compliant accounting (Swiss GAAP FER / micro)
Under ordinary accounts or micro-accounts, on-call allowances follow the accrual principle: charge to the period in which the employee provided on-call availability or intervention.
Monthly recording via payroll
At payroll cycle close, debit personnel account (e.g. 5700 Salaries) and employer social charges account (e.g. 5701–5799) with credit to social liabilities and bank. Use cost centres or projects to allocate on-call to clients, sites or maintenance contracts.
Software such as Accountex lets you link payroll categories to accounts and analytical dimensions, avoiding manual year-end adjustments.
Reimbursements and ancillary expenses
Mileage and meals on intervention: record according to company policy (actual reimbursement or compliant flat rate). Pure entertainment or undocumented expenses risk rejection for tax purposes.
If the client is invoiced for an emergency intervention, align COGS or service revenue with the same cost centre as the technician for reliable margins.
SMEs with project work may capitalise or allocate internal costs only if costing policy is consistent and documented; when in doubt, treat on-call as period cost in the income statement.
Payslip traceability and declarations
For internal audit, external audit and OASI checks:
- Keep shift schedules with dates, names and type of service (on-call vs on-site presence).
- Record call logs or tickets linked to interventions paid on a usage basis.
- Issue salary certificate with aggregate lines consistent with regulations; avoid parallel “off-the-books” payments.
- Periodically reconcile payroll totals with accounting and OASI declarations (usually monthly or half-yearly depending on procedure).
- Update LPP regulations and LAA documentation if allowance frequency or amounts change.
Common mistakes in SMEs
| Mistake | Consequence | Correction |
|---|---|---|
| Allowances paid without contractual basis | Labour dispute; tax deduction challengeable | Written annex to contract; internal resolution for new rates |
| Failure to include in OASI/LPP | Adjustments and interest; pension gap | Classify payroll items with salary flag |
| Intervention hours not recorded | Excess working time; missing rest | Time tool with manager approval |
| Same account for all allowances | Unreliable cost analysis | Sub-accounts or dedicated cost centres |
Operational checklist
- ✓Define in writing on-call availability, response times and remuneration (LA / OLL 1 / CLA).
- ✓Calculate full employer cost, not only the flat allowance received by the employee.
- ✓Set up payroll accounts and analytics in line with personnel budget and service pricing.
- ✓Archive shifts, calls and expense receipts for each accounting period.
- ✓Review on-call rates annually and impact on margins, especially if intervention volume grows.
Structured management of on-call availability protects employees and the business, makes personnel costs predictable and simplifies monthly closes and cantonal and federal social and tax declarations.